KPTL acquires Brazilian EPC company Fasttel Engenharia Ltd

Kalpataru Power Transmission Limited (KPTL), a leading global EPC player in the power and infrastructure contracting sector, today announced that its wholly owned subsidiary in Brazil namely Kalpataru Power do Brasil Participações Ltda. has signed definitive agreement to acquire controlling stake of 51% in Fasttel Engenharia Ltda., Brazil (Fasttel) for ~USD 8.80 Million, subject to customary adjustments.

Fasttel, founded in 1988, specializes in Engineering, Procurement, and Construction (EPC) and maintenance of power transmission lines, substation and distribution systems across various voltage range up to 750 kV. The Company mainly operates into three business areas, comprising of EPC of substation, transmission and distribution network services with revenue of around USD 47 Million in 2020 and has a profitable track record. The Company has presence in Brazil with an order book of around USD 95 Million as on date.

The acquisition of Fasttel is in line with KPTL's strategy to strengthen its core EPC business and have greater geographical presence in stable and growing markets. The transaction is likely to close by end of Q1FY22.

Commenting on the acquisition, Mr. Sanjay Dalmia, Executive Director, KPTL said, "We continue to expand our geographical reach aligned to our vision of being a local player in the global environment. This acquisition of Fasttel is of strategic fit to KPTL in order to capture local market opportunities in Brazil and expand business in Latin American market. Fasttel has a track record of revenue growth of more than 25% CAGR over the last 5 years along with consistent profitability. It has experienced manpower which does in-house Engineering, Procurement, Land Survey, Planning, Environment Clearances and Construction.

Brazil is a large and well-regulated power transmission and distribution market with sizable investment planned in next 10 years.

We look forward to welcoming Fasttel into the Kalpataru family. Both the companies will leverage each other's capabilities and look forward to create a strong presence in Brazil and larger Latin American T&D market."

Shares of KALPATARU POWER TRANSMISSION LTD. was last trading in BSE at Rs.364 as compared to the previous close of Rs. 345.5. The total number of shares traded during the day was 94549 in over 5030 trades.

The stock hit an intraday high of Rs. 364.75 and intraday low of 346.65. The net turnover during the day was Rs. 33895156.

Source : Equity Bulls

Keywords